**Abstract**

Crowdfunding is a fundraising process from a large audience to launch a new venture or entrepreneurial project. It is mostly based on the use of Web and represents a unique category of fundraising, with different vehicles, processes and goals. It is very diffused in the global economic landscape and in Italy where a specific discipline for crowdfunding was introduced for the first time in Europe. The chapter, after a summary of the peculiarities, spread and regulation of crowdfunding, intends to analyze the characteristics of a platform operating on the Italian market (Produzioni dal Basso), highlighting its characteristics, strengths and weaknesses. The work also intends to carry out a simulation for the realization of a crowdfunding project by an Italian Foundation operating in the social sector of child and adolescent distress, to be implemented through the use of the same platform.

**Keywords:** crowdfunding, Italy, regulation of crowdfunding, crowdfunding models, innovative start-up

### **1. Introduction**

In recent years, with the development of Internet, a new and effective fundraising methodology, called crowdfunding, is diffused1 . In particular, crowdfunding allows founders of for-profit ventures to fund their efforts by drawing on relatively small contributions from a large number of individuals, without traditional financial intermediaries, but using the web.

Crowdfunding is a growing sector also in Italy and it is characterized by the continuous novelty that affects both platforms and campaigns, which make innovation and sustainability some of the main strengths. In Italy, a specific discipline for crowdfunding was introduced for the first time in Europe.

The purpose of this chapter is to study the principal peculiarities of the crowdfunding in Italy and to analyze the characteristics of a platform operating on the Italian market (Produzioni dal Basso). The work also intends to carry out a simulation for the realization of a crowdfunding project by an Italian Foundation operating in the social sector of child and adolescent distress, to be implemented through the use of the same platform.

<sup>1</sup> Even if the study reflects a common view, Rosa Adamo mainly contributed to Sections 1, 2 and 7; Federico Domenica mainly contributed to Sections 4, 4.1 and 5; Mariantonietta Intonti mainly contributed to Sections 6, 6.3 and 6.4; Simona Mele mainly contributed to Sections 6.1, 6.2 and **Box 1**; Antonella Notte mainly contributed to Sections 3 and 4.2.

#### *Banking and Finance*

The chapter is divided into five sections. The first section analyzes the origin and the diffusion of the crowdfunding in Italy. The second section discusses the Italian regulation putting in evidence the principal problems and the prospect. The third section illustrates the modality of fundraising, in particular classic and new model are discussed. The fourth section analyzes benefits and risks of crowdfunding. Finally, in the fifth section, a study on characteristics of a platform operating on the Italian market and a simulation for the realization of a crowdfunding project by an Italian Foundation are realized.
